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Updated on Monday, August 17

#21191

OMG: I hate it when people complain that their parents are too rich so they don't qualify for OSAP. You'll be happy when you graduate debt-free. Even though I went through co-op, I had to apply for student loans because I sent the majority of my co-op money to support my parents. I'll be paying back my $30k+ student loans for the next 10 years.

22 comments

  1. and that's at a rate of 5.35% when the current rate is at 0.5% or if you want to go with a 10 year FIXED mortgage of 4.85% either way ROBBERY... GOOD choice of government students, aren't you glad you got your 30% off tuition, you didn't get that either... SUCKS for you....

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    1. >> implying more than 25% of students were of voting age during the last election
      >> implying student interests are ever a popular policy

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  2. I'm pretty sure people whose parents are loaded but won't give them any help are the worst off of anyone. At least you got OSAP.

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    1. Oh yeah they're so bad off... growing up with tons of experiences, clubs, activities, sports etc that help them get into the best schools... role models and connections to ensure they start their career off on the best foot... and finally an enormous inheritance that's left to them midlife ensuring that they do not need to plan their retirement properly

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    2. ^Who says their parents spend money like that? Some wealthier families living within their means to teach their children the value of money. You need to stop watching TV.

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    3. Nah, 2a is right. Rich kids get everything. If you're poor you're gonna end up in a public school with barely any funds.

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    4. 2a, not everyone actually has that kind of life.

      There are plenty of people in wealthy upper-middle class families who become estranged from their parents and leave the house. My dad walked out on his parents when he was 16, and never looked back - or got a single penny from them - ever again. They also disowned him - when they die, he won't get a penny in their will.

      But someone like him, if they applied for OSAP because they wanted to go to university, they'd be told no because of their parents' income. Nevermind the fact they don't actually talk to or live with their parents. So they can either wait until they've been out of high school for 4 years, or get a job and apply for a loan/line of credit from their bank. Either way, they go into debt.

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    5. @2d if they disowned them, he would qualify bc he's no longer a dependent.

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    6. @2.e Not always. I am not a dependent, but I am not eligible for OSAP.

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  3. Kids who don't get OSAP are not rich. OSAP does not even increase with the rate of inflation. I come from a middle class family that could not afford to pay for me to go to university and I do not qualify for ANY OSAP. Also your bullshit about clubs or whatever, I worked all throughout high school to afford to pay for myself to go to university. I will be graduating debt free because I worked to pay for university. You clearly have no idea what you are talking about. GOOD DAY.

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  4. Takes you 10 years to pay off 30k? Are you in arts or something?

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    1. Some people only pay back the minimum amount every month, and thus spend the first 10 years just paying the interest.

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    2. See 5. I meant to reply to this comment.

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  5. The loan terms are $352.56/month for 120 months. That's already a big chunk of change. I could increase my payments but that won't leave me with much wiggle room in my budget.

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    1. Ok, let us assume your degree in ARBUS is worthless. You graduate at age 23 and you make minimum wage at McDs and Timmies. I am going to assume you are a hard worker. You work 30 hours at each for 50 weeks a year.
      You should come out with $33,750. You will owe $4,570 in taxes. Your after tax income will be $29,180.
      Let us assume you are religious and tithe 10% of you income for $3,375.
      Food will run you $3,650 at $10 a day (this is a lot, I eat for $5).
      Housing will run you $500 a month for a room for $6,000 a year.
      Get the best internet in town (250 Mbps with Rogers) for $1,020 a year.
      Shop at Walmart & Giant Tiger for clothing for $1,500 a year.
      Get bus passes for the year for $79 a month for $948 a year.
      You have $50 a week for spending money for $2,600 a year.
      This leaves you with $10,087.
      I am going to assume you have $36,000 debt when you graduate.
      I will work with the 5.35% interest rate.
      You pay back $840 a month and it will be paid off in four years.
      After your student loan is paid off you start filling your TFSA with the $10,000 and put in an ETF tracking the SP 500. Assume the 100 year average of a 7% return.
      At the end of the ten years, you will have $86,540.21 in your TFSA.
      You are now 33. You can go work whatever job you want and consume 100% of your income, you just don't get in debt.
      The TFSA keeps compounding away and your government pension plan keeps growing. When you retire at age 67 you should receive $25,000 a year from the government pension (according to the Canadian Retiremtn Income Planner).
      The TFSA has grown to $863,505.95 and you cash in 4% a year for $34,540 a year. Your total retirement income is $59,540 a year.

      I have tried to be as realistic with the numbers, and some of the assumptions are ridiculously conservative, especially the working for minimum wage assumption.
      My point being, not only should you be able to pay of your debt in the next ten years, but you should be able to do a substantial portion of your retirement saving.
      Live within your means and invest for tomorrow.

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    2. Assuming no extra expenses for emergencies and living like a hobo.

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    3. ^The good news is you can do this exact thing with three times the spending and food money if you get a real job. The bad news is then you get married and have kids and all of this eats shit hard.

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    5. Yes, I think the average yearly income for BA after two years is about 45k, according to Macleans, so really, the $33,750 for working 60 hours a week is hyperbole

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    6. But inflation is running at like 5% or something ridiculous like that right now...

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  6. I love my new BMW M4

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  7. lol 30k. I'll have at least double that, fuck off..

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